Owning investment property can be very beneficial for you for the long term even for the immediate term. Once you own an investment property, you own a property that can produce you monthly passive income. Buy 3 or more and you can live off that and move onto to bigger and better things in life. Many people own many properties and even commercial property whereby you have many multi units earning yourself a very nice monthly income. Not only are you making money each money, you are building up the value of the property in several ways, including earning the rise of the property’s value and the equity earned from it from the money you put into it and of course the rise of the market and earn your equity.
To get top dollar from your home, you will want to furnish it well enough it’s turn-key and ready to move in for your tenants. You will want to collect the first two months rent and a deposit so you protect yourself and your investment. You can raise the rents to 10% each year so that in itself is a good raise from your investment. Aside from the money earned from your property each month, you must be a good landlord to your tenants because tenants can turn out ugly so beware. You can end up in court and not even get paid your rent while your tenants are occupying your property. Be attentive to their needs and never neglect them because in most cases, the county favors the tenants and you will end of being the loser and pay so much costs to cure this whole thing. It’s not a good situation.
Make sure that when you own property and are making income from it, make sure it’s above your mortgage payment so you are in the positive unless you know that you can quickly turn this property for a profit in fairly a short period of time. In some cities, you own property and have a mortgage in it and the mortgage exceeds the amount of the rent you can get for it. As long as you know what you are doing, you can still make money, especially when you try a selling it in a timely manner. After you have achieved this, you would have earned yourself a nice profit.
There are many responsibilities when owning rental property, especially when there are tenants. They can be demanding and ruthless or even downright unreasonable. Some demand so much to an extent where they will refuse to pay their bill and then what happens, it gets to be a legal battle. You can resolve issues on one of many ways. Comply with your tenants or take them to court. One way of another, it’s your property and things tend to get resolved however, it can cost you. You have to look at the long term though because although you can spend a lot of money, you can make a lot more money in the long term. That’s the bigger and better picture. It takes money to make money as the old adage goes.
A lot of these expenses that you put into your property can be considered a loss and a tax write off. Make sure you keep good records so you can have all your numbers ready for your CPA. You will experience many rewarding times versus non rewarding times because you will be making that passive income and enjoy the long term benefit of making a profit from the equity built over a length of time. Make sure you take care of your property so it takes care of you.
More power to you,